Disney is set to begin testing a premium video-on-demand service that would make movies available to viewers at home shortly after they appear in theaters.
At a two-day investor conference, Bob Chapek, Disney's president of distribution, indicated the company would target the in-home offering to families with young children.
"Our research shows that one of the biggest segments of the audience that's interested in home premiere are families with very young kids who can't make it to the theater given the age of their children," Chapek said.
While few details were given, the move underscores the pressure on Disney boss Bob Iger to shake up movie distribution as the DVD market continues to decline and online streaming services, such as Netflix, grow in popularity. Cinema owners will no doubt fight the move, which they believe would cut into attendance. In Europe, theater owners protested when Disney shortened the typical four- to six-month window on "Alice in Wonderland," releasing the DVD after 90 days.
Windowing refers to the chain of distribution partners and how quickly they're able to rent or sell movie product.
"Disney made it clear that windows need to collapse to make more money in the film business," said BTIG media analyst Rich Greenfield, who attended the Disney event.
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Read more: http://www.nypost.com/p/news/business/disney_to_test_premium_vod_SrS4OiPJQz1O7KEkzMgATL#ixzz1EKbBV500
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